NEW YORK – Feb. 19, 2016 – The amount of time it takes to close a mortgage loan increased again last month.
The average time in January climbed to 50 total days, up four days since the “Know Before You Owe” mortgage disclosure rules took effect in October, according to a report released by Ellie Mae.
Over the past year, the average time to close on a loan has grown 10 days longer. In January 2015, the average time to close was 40 days, according to Ellie Mae.
The time to closing has also grown each month since the Truth in Lending (TRID) implementation on Oct. 3, 2015. It climbed from 46 days in October to 49 in November and December and 50 days in January.
Average closing times by type of loan in Jan.
- Purchase loans: 51 days (up from 50 days month-to-month)
- Refinance loans: 48 days (up from 47 days)
- Federal Housing Administration loans: 51 days (up from 49 days)
- Conventional loans: 49 days (same)
- Department of Veteran Affairs loans: 53 days (up from 52 days)
Ellie Mae’s report also found that conventional purchase closing rates also reached a new high in January and rose above 73 percent for the first time since Ellie Mae began its tracking in August 2011.
In addition, the average FICO score declined last month, averaging 719 on closed loans (down from 722 in December). That is also the largest month-to-month drop in FICO scores since mid-2015, Ellie Mae notes.
Source: “The TRID Ripples: Time to Close Mortgage Loans Continues to Rise,” HousingWire (Feb. 17, 2016)
© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688